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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    To Reduce the Effects of Crowding Out Caused by an Increase
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To Reduce the Effects of Crowding Out Caused by an Increase

Question 91

Question 91

Multiple Choice

To reduce the effects of crowding out caused by an increase in government expenditures,the Federal Reserve could


A) increase the money supply by buying bonds.
B) increase the money supply by selling bonds.
C) decrease the money supply by buying bonds.
D) increase the money supply by selling bonds

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